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November 2017 - www.avitrader.com Oh, what a show! Company profile Engine Lease Finance Machining productivity MRO News from around the world People on the Move latest appointments
Editor‘s Page 2
The battle for Dubai
T
he organisers of the just ended Dubai air company said it recorded commitments for 296 air-
show say trade visitors to the event were up planes - including 50 options - with a value of about
around 20% on the 2015 event, with some $50 billion at list prices.
79380 people entering the event during its
So who won the battle? It certainly looks like Airbus
five-day run. At the end of the show’s final day, the
had the slight edge in terms of monetised orders but
order book stood at almost US$113.8 billion.
its worth remembering that list prices are not usually
Despite a colourful appearance by the regional and what the airlines actually pay -they always negotiate
Published monthly by mid-sized airplane makers, the main battle was [as for discounts and these are usually to commercially
usual] between Airbus Vs Boeing. Among the high- sensitive to make public.
AviTrader Publications Corp.
lights, Airbus revealed its largest single announce-
Suite 305, South Tower Both manufacturers have strong demand for
ment ever – a US$49.5 billion deal with Indigo Part-
5811 Cooney Road their single-aisle programmes the A320Neo and
ners to purchase 430 aircraft in its A320neo family.
Richmond, British Columbia 737Max. The 787 and 777 are doing exceptionally
With the Airbus order, Indigo Partners, a US-based
well as is the A330 to a lessor extent. However, both
V6X 3M1 private equity fund, has doubled its existing order
OEMs are struggling to attract orders for the the
Canada of 427 A320 family aircraft. The fund owns four
747-8 and A380 respectively.
ultra low-cost airlines, Wizz Air, Frontier Airlines,
Email: p.jorssen@avitrader.com JetSMART and Volaris. In addition to other orders, Dubai has been a success for both companies, but
Airbus reports to have generated orders worth a at the larger end of the aircraft scale, the jury is still
Tel: +1 (424) 644-6996
combined total of $58.3 billion at list prices. out.
www.avitrader.com
Boeing won large commitments across its twin- Keith Mwanalushi
and single-aisle commercial airplane families. The Editor
Editorial
Keith Mwanalushi, Editor
Email: keith@aeropublications.co.uk
Mobile: +44 (0) 7871 769 151
Design
Volker Dannenmann,
Layout & Design
Email: volker@dannenmann.com
Mobile: +34 657 218706
Advertising inquiries
Jenny Vogel
Head of Sales & Marketing
Email: jenny.vogel@avitrader.com
Tel: +49 (0) 8761 346007 EK placed orders for 40 787s at the show.
Photo: Emirates
Registration
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Cover story: Dubai makes it fly! . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
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AviTrader MRO - November 2017
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MRO and Production News 4
necessary test environment to simulate oper-
ating conditions. Service Bulletin and Mod Kit
embodiment can be accomplished, alongside
all Test, Repair and Overhaul tasks.
Turkish Technic and SAEI consolidate
maintenance partnership
Turkish Technic and SAEI (Saudia Aerospace
Engineering Industries) have signed a Memo-
randum of Understanding (MOU) during the
Dubai Airshow. The agreement expands the
support and maintenance solutions in the
field of component service which forms the
basis to pursue a longer-term business part-
nership between both companies in support
flyadeal and LHT sign aircraft engineering services contract of their customers’ fleet operations in the
Photo: LHT
Kingdom of Saudi Arabia and surrounding
market. Under the terms of the MOU, the
flyadeal and Lufthansa Technik sign OEMServices extends component sup- companies cooperate in component main-
comprehensive engineering services port services with Singapore Airlines tenance and component pool services, and
contract improving the partnership through working
OEMServices and Singapore Airlines have
together for warehouse and logistics services.
Saudi-Arabia’s low-cost airline flyadeal, and extened the A380 component support ser-
CEO of Turkish Technic, Ahmet Karaman,
Lufthansa Technik have signed a comprehen- vices agreement. The agreement provides
said: “The Middle East region is extremely
sive aircraft engineering services contract. The comprehensive 24/7 component support
important for us. Extending cooperation with
contract will run over four years and will cover from OEMServices’ main A380 regional
the SAEI fits perfectly Turkish Technic’s global
the complete flyadeal A320 fleet. One of the pool based at Singapore’s Changi Airport.
strategy for increasing customer services and
major components of the agreement is the OEMServices’ Original Integrated Services
widening its network.”
set-up of a new maintenance control center. (OIS) division launched operations ten-years
This will include a full Continuing Airworthi- ago in Singapore and will further accompa-
ness Management Organization (CAMO) and ny Singapore Airlines in its need for great-
aircraft engineering support from Lufthansa er proximity and reactivity thanks to a new SAFAIR signed GE’s TrueChoice over-
Technik. Lufthansa Technik will also organ- 600m² warehouse located at 21, Changi haul agreement for CFM56 engines
ize troubleshooting and will help flyadeal to North Rise in Singapore.
establish an optimized maintenance program SAFAIR OPERATIONS has signed a five-year,
which allows highly efficient operations result- TrueChoice overhaul agreement with GE Avi-
ing from an optimized maintenance schedule. MAEL adds Trent 900 engines to Airbus ation for the maintenance, repair and over-
A380 Line Maintenance capability haul of its CFM56-7B engines that power its
Boeing 737-800 aircraft.
Monarch Aircraft Engineering has extended
Jet Aviation gains EN9110 certification
its line maintenance capabilities by gaining
and other maintenance approvals in
Airbus A380 Rolls-Royce Trent 900 engine
Dubai AES Global gains GCAA Design
approval. The new addition to MAEL’s capa-
bilities has been approved by the Civil Avia-
Organisation Approval
Jet Aviation’s maintenance facility in Dubai has
been awarded EN9110 certification following tion Authority (CAA) and has been added to Aerospace Engineering Solutions (AES), a
an independent audit. The company has also the Part 145 approvals. This allows MAEL to UK-based aerospace design and certifica-
gained EASA, FAA and GCCA approvals for provide line maintenance support for opera- tion organisation, has gained General Civil
the Airbus Corporate Jet (ACJ) family, as well tors with Airbus A380 Trent 900 engines at Aviation Authority (GCAA) Design Organisa-
as EASA approval for the Bombardier Global Birmingham Airport. tion Approval (DOA) from the United Arab
BD700 series. In recognition of the develop- Emirates (UAE). The approval demonstrates
ment, implementation and continuous im- that AES complies with all regulatory require-
provement of quality management systems, Oakenhurst Aircraft Services announce ments for accomplishing and approving Sup-
Jet Aviation’s maintenance facility in Dubai new Galley Support Programme plemental Type Certificates (STC) and minor
recently received EN9110 certification that was modifications on UAE-registered aircraft and
confirmed by an independent auditor. Coupled Oakenhurst Aircraft Services has announced compliments the European Aviation Safety
with the EASA, FAA and GCCA approvals, the its new Galley Support Programme. An ex- Agency (EASA) Part 21J Design Organisation
company secures its ACJ Service Centre Net- tensive capability list now covers; Sell, B/E Approval already held by the company. Re-
work (SCN) status. With these approvals, the Aerospace, Inventum, Monogram, Zodiac, ceiving the GCAA Design Organisation Ap-
company is authorized to support 24-month Herman, Ipeco and Rumbold. Full MRO re- proval enables UAE registered aircraft access
inspections for the ACJ family and EASA and quirements are carried out from within a to the company’s catalogue of over 2,000
FAA-registered Global BD700 series. dedicated Galley Division, which provides the approved major and minor changes.
AviTrader MRO - November 2017
MRO and Production News 5
regularly hear that next-generation machines
need to be customizable and configurable.
The new meter-class machine we’re debuting
at formnext is our response to that feedback
– a solution that is scalable and customiz-
able and meets the needs of our industry, as
it matures,” said Mohammad Ehteshami Vice
President and General Manager, GE Additive.
Magnetic MRO extends engine repair
capability
Magnetic MRO has further extended its en-
gine repair capability by adding top case re-
pair and bushing replacement to its current
service offering. As of October 20, 2017, the
company has extended its capability across
The signing of the new deal at the MRO Asia: Paul Lochab, CCO at Satair Group (left), Mr. Nguyen Duc Thinh, VP Technical the CFM56 range of engines including the
at VietJEt (Middle) and Steve O’Connor, VP Aerospace Asia at PALL Aerospace. Photo: Satair Group
CFM56-3, CFM56-5 and CFM56-7, with
EASA and FAA approvals provided. Through
Satair Group, PALL Aerospace and a competitive tender and conducted a very de-
tailed overview of AerFin in its search for both a this new capability, Magnetic MRO engines’
VietJet sign contract for avionics department will be able to shorten its custom-
cooling filtration system quality support solution and a competitive price
point. This solution provides supply certainty to er’s downtime by providing a more efficient
At the MRO Asia exhibition VietJet, Vietnam’s BA CityFlyer, reducing the operating cost of its and in-house repair service supported by a
fast-growing low-cost carrier signed a five-year E-Jet fleet, while maintaining high-quality en- global team of specialists. In essence, Mag-
contract for the fitting of Pall Aerospace’s Avi- gineering. BA CityFlyer operates from eight UK netic MRO’s expert and competent engineers
onics Cooling Filtration System on to its fleet airports to over 30 European destinations per will be on standby and ready wherever the
of 92 Airbus A320 family (plus five options) year, so proximity of support and reliability of a customer’s engine is located.
aircraft that it operates and has on order. The 24/7 AOG service were key factors in choosing
deal is the largest ever Pall Aerospace Sup- the right supplier.
plier Furnished Equipment (SFE) contract won NORDAM and China Airlines an-
by Satair Group in Vietnam and is valued at nounce joint venture
some US$1.4m. The Pall system was introduced
to combat the issue of water ingress and dust GE Additive unveils first BETA ma- NORDAM and China Airlines have signed a
build-up in the avionics compartment and uses chine from its Project Atlas program joint venture agreement to establish NOR-
DAM Asia Limited, a company to repair and
a patented cyclone separator system to remove
GE Additive has unveiled the first BETA ma- overhaul structural aircraft components for the
free water from the air intake. This provides 100
chine developed as part of its Project A.T.L.A.S China Airlines fleet and for other airlines in the
percent water separation efficiency even under
program. The meter-class, laser powder-bed Asia-Pacific region. For NORDAM, the part-
the most adverse Airbus testing conditions. The
fusion machine has been developed to pro- nership brings a consistent baseload of work
water removal efficiency remains constant and
vide manufacturers of large parts and com- from China Airlines and its affiliates, which in-
is not affected by the pressure drop across the
ponents with a scalable solution that can be clude Tigerair Taiwan and Mandarin Airlines,
filter element. The system gives enhanced dust
configured and customized to their own spe- while affording proximity to regional custom-
protection in the avionics bay and maintenance
cific industry applications. Project A.T.L.A.S ers as a strategic objective of the company’s
cost savings due to the improved filtration, as
(Additive Technology Large Area System) is maintenance, repair and overhaul business in
well as lower inventory holdings since Pall’s sys-
GE Additive’s company-wide program to the Asia-Pacific region. For China Airlines, the
tem requires only one filter element compared
develop the next-generation large additive flag carrier and largest airline of the Republic
to two in the original system.
machines. This first BETA machine was devel- of China (Taiwan), the agreement in-sources
oped in just nine months and complements control of critical competencies while upgrad-
the company’s existing portfolio of products. ing proficiencies; reduces labor and transpor-
BA CityFlyer selects AerFin’s Beyond Ideally suited to industries that require large tation costs; expands its share of the third-party
Pool to support Embraer E-Jet fleet complex metal parts, such as aviation, au- maintenance, repair and overhaul market;
tomotive, space and oil and gas industries, and promotes development of the aviation
AerFin has signed a seven-year agreement to the new BETA machine builds on technology and aerospace sector in Taiwan.
support BA CityFlyer’s fleet of 20 Embraer E-Jets previously developed by GE, combined with NORDAM Asia Limited will also leverage the
via its “Beyond Pool” support program. “Beyond Concept Laser’s expertise in laser additive China Airlines Cargo freighter network for
Pool” offers a fixed cost solution for all of BA machines. The first few BETA machines are freight-cost advantages and China Airlines
CityFlyer’s E-Jet component requirements and currently being evaluated by a small group status to pursue more economical raw-mate-
will be fully supported out of AerFin’s London of customers and more will be available for rial purchases and spare-parts pricing, and
Gatwick facility. BA CityFlyer is a wholly owned delivery in 2018. “Irrespective of industry, will benefit from NORDAM’s industry allianc-
subsidiary of British Airways and part of the In- every customer has its own specific needs es and existing network of sales representa-
ternational Airlines Group (IAG). IAG opened and its own unique levels of complexity. We tives in Asia Pacific.
AviTrader MRO - November 2017
MRO and Production News 6
gistics network in the region further increase
the performance and service portfolio of the
company. For Lufthansa Technik the portfolio
expansion is a major increase of its footprint
in the Americas. In view of the capability ex-
pansion and the focus on increasing Boeing
737 capabilities, the number of employees
is expected to rise as well. Lufthansa Technik
Component Services today employs close to
600 employees at its eight locations through-
out North America. Numerous changes have
also been implemented to secure the supply
chain in the region, including the establish-
ment of new processes. Complementing the
workshop expansion, Lufthansa Technik has
also opened a new regional office in Miami,
Florida, in October. The office employs about
150 employees, with corporate sales and
other commercial and operational services,
such as a 24/7 AOG desk and material trad-
ing, being co-located here. By combining the
Magnetic MRO opens its new paint hangar different product divisions under one roof in
Photo: Magnetic MRO
the region, Lufthansa Technik ensures a more
Magnetic MRO presents new paint AEI receives order for three addition- aligned and efficient market approach.
hangar al MD-83SF freighter conversions for
Aeronaves T.S.M.
Magnetic MRO is opening its purpose-built
StandardAero teams with GDC ME
paint hangar’s doors for operation as of No- Aeronautical Engineers (AEI) has signed a
and Horizon Shield to provide MRO
vember 2, and has confirmed that the hangar contract to provide Mexico-based Aeronaves
services in Saudi Arabia
is already booked for the next six months by T.S.M (TSM) with three additional MD-83SF
both existing and new customers. The new fa- freighter conversions. The first MD-83 aircraft StandardAero has entered into an exclusive
cility is located at its Tallinn home-base and (MSN 53293) will commence modification on teaming agreement with GDC Middle East
has been built as a part of the company’s December 11, followed by the second MD- (GDC ME) and Horizon Shield Corporation of
growth strategy. The total size of the new paint 83 (MSN 53292) commencing modification Riyadh to provide MRO services, engineering
hangar is 2,853 m² and it enables Magnetic in February of 2018 and then followed by the support, and design services for military air-
MRO to provide commercial and VIP stand- third MD-83 (MSN 49941) starting modifica- craft operators in the Kingdom of Saudi Ara-
ard painting services for a wide range of air- tion in late April, 2018. All the AEI MD-83SF bia. The three-year teaming agreement will
craft types, including the Boeing 737max and modifications will be performed by Commer- initially cover government-owned rotorcraft
the Airbus 320neo family, as well as all other cial Jet’s Miami, Florida facility. for the Saudi Navy, Air Force and Land Forc-
narrow-body aircraft. With this new hangar, es. Commenting on the teaming agreement,
Magnetic MRO has not only increased the to- Simon Jones, President of StandardAero/Vec-
tal dedicated painting area to 4,354 m², but
Lufthansa Technik Component Services tor Global Services, said: “Saudi Vision 2030
has also gained new competencies in terms of is built around three themes: a vibrant society,
expands workshop in Tulsa
customized features applied to the new facil- a thriving economy and an ambitious nation.
ity. The building is equipped with a custom Lufthansa Technik Component Services (LTCS) Vector is extremely pleased to extend its dec-
docking system which can be tailored to serve has substantially expanded its workshop in ades-long history of providing reliable avia-
different types of aircraft, making the facility Tulsa, Oklahoma. On November 13, the tion services to Saudi Arabia. By teaming with
one of a kind in the whole region. It is also Lufthansa Technik subsidiary officially start- leading high-quality service providers such
designed to accommodate base maintenance ed operation of the new component shop. as GDC ME and Horizon, we are confident
visits, and engineered to support value added Providing a shop floor area of 10,700 m² of achieving incremental growth for all three
qualities such as safety, airflow, contamina- (115,000 ft²), the facility has doubled in size. firms, while also helping to meet the ambi-
tion control, lighting and energy efficiency. Additional capabilities and an enhanced lo- tious goals of Saudi Vision 2030.”
AviTrader MRO - November 2017
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fixed, predictable costs and flexible commercial
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comprehensive in-house component, composite
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costs and streamline your supply chain. Coupled
with GA Telesis’ global distribution network, we
provide 24/7/365 reliable support to ensure the
maximum dispatch reliability of your fleet.
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MRO and Production News 8
state-of-the-art heavy maintenance facil-
ity. The extensive work scope, which includes
major structural checks and incorporation of
the mandatory Service Bulletins, is supported
by an onsite Airbus technical advisory team.
First agreed last year, this joint services col-
laboration materializes Etihad Airways Engi-
neering’s recently announced membership of
the international “Airbus MRO Alliance”, while
for airlines it establishes OEM-backed third-
party A380 maintenance, engineering and
embodiment capabilities in Abu Dhabi, de-
livering efficient turnkey solutions under one
roof. During the actual heavy maintenance
visit, Airbus Customer Services provides tech-
nical advisory, logistical support and planning
optimization managed by a dedicated on-site
expert team, allowing minimized downtime of
the aircraft.
737-700 during conversion at IAI
Photo: IAI
Honeywell and LHT create largest
Israel Aerospace Industries obtains maintenance, repair and overhaul
STC approval for freighter conversion capability for Airbus A350 fleets
of 737-700BDSF Honeywell to maintain aftermarket
components for Emirates Airlines
Honeywell has signed Lufthansa Technik as
Israel Aerospace Industries (IAI) has received a under 15-year agreement
a licensed component repair center and ex-
new Supplemental Type Certificate (STC) from
Honeywell has signed a 15-year Component clusive global asset provider for all Honey-
the FAA (Federal Aviation Administration) for
Service Solutions agreement with Dubai- well components and the HGT 1700 APU on
cargo conversion of the 737-700BDSF . IAI
based Emirates to maintain aftermarket com- Airbus A350 aircraft. Under the agreement,
has recently completed its first-ever conver-
ponents on the airline’s fleet of Airbus A380 Lufthansa Technik will offer A350 operators
sion of a prototype aircraft from passenger-
and Boeing 777 aircraft. The technology used around the world an unequalled experience
to-full-freighter configuration at its facility, in-
in this agreement extends through 2031 and with maintenance, repair and overhaul ser-
cluding the installation of a wide cargo door.
covers comprehensive component repairs vices for all Honeywell components, including
The aircraft was delivered to Alaska Airline
and support solutions for Emirates’ fleet, thus auxiliary power units. Since the A350’s entry
as the first of a three-aircraft order. The work
reducing grounded aircraft time. Honeywell’s into service in late 2014, Lufthansa Technik
was performed at IAI’s Bedek Aviation Group
strengths in the areas of component exchange has had two years of operational experience
facilities in Israel.
and repairs will help Emirates benefit from a managing six in-service A350 fleets with
strong level of support and expertise, thereby more than 50 in-service aircraft. The new
reducing disruptions to operations due to agreement extends Honeywell’s longstanding
Sichuan Airlines signs A350 XWB component repairs. Honeywell’s services are relationship with Lufthansa Technik as a Hon-
Flight Hour Services (FHS) components designed to reduce maintenance costs, lower eywell-licensed repair facility for mechanical,
support cost of ownership, and provide the highest avionic components and hydro-mechanical
possible fleet reliability. Aircraft components units, and demonstrates its commitment to re-
Sichuan Airlines, an all-Airbus-fleet air- manufactured, supported and repaired by duce aircraft downtime, providing faster turn-
line based in Chengdu, has selected Airbus Honeywell include avionics and mechanical around and getting aircraft back in service.
Flight Hour Services (FHS) and Airbus Real parts.
Time Health Monitoring Service (AiRTHM) to
provide components and predictive mainte- CL Aerospace gains EASA approval
nance support, securing the highest service for new, SLA Battery
level and operations for its new fleet of four Airbus’ and Etihad Airways Engineer-
A350 XWBs. Sichuan Airlines is to operate the ing’s joint A380 MRO Services offer- C&L Aerospace, in partnership with Secura-
A350 XWBs in the coming months on its in- ing commences operations in Abu plane Technologies, a Meggitt PLC Com-
ternational routes, including Chengdu to the Dhabi pany, has received EASA approval for the
USA. This long-term FHS-Components and Securaplane Sealed Lead Acid (SLA) Batter-
AiRTHM agreement provides an extensive Work is starting on the first A380 “six-year” ies for Saab 340 aircraft. In August, both
scope of A350 line replaceable units (LRUs) C-check for a third-party customer airline at companies announced the battery’s Sup-
and APU, guaranteed spare parts availability Airbus’ and Etihad Airways Engineering’s joint plemental Type Certificate (STC) and it’s
through pool access service and on-site stock A380 MRO Services offering in Abu Dhabi. FAA approval. Now with EASA approval,
at customer main base, as well as component The aircraft, A380 MSN072, belonging to the battery can be installed on Saab 340
reliability management and maintenance. In Lufthansa, arrived at the end of October, and Aircraft registered in Europe. In conjunction
addition, AiRTHM brings a proactive mainte- following an initial inspection phase, is getting with the STC, Securaplane and C&L have
nance mode to A350 operations. ready to undergo the heavy check at Etihad’s entered into an agreement that designates
AviTrader MRO - November 2017
MRO and Production News 9
C&L as the worldwide Saab 340 Secura- flow lines and the latest machinery to over- Technetics offers is engineered for safety, per-
plane SLA Mainship battery distributor. The haul engines to the industry’s highest stand- formance and durability.
non-hazardous SLA batteries are mainte- ards. Demonstrating a high level of quality
nance-free,. can directly replace existing and safety, the engine center has delivered
Ni-cad batteries, offer superior hot and over 600 engines since 2010.
cold weather performance and the ability to Embraer and Austral Líneas Aéreas
recover from deep discharge. extend Pool Program for E-Jets
Technetics Group announces new Embraer and Austral Líneas Aéreas, Aer-
seal selector tool for critical service olíneas, Argentina’s domestic airline, have
Pratt & Whitney Turkish Engine Cent- environment extended their Flight Hour Pool Program
er signs maintenance contract with agreement until 2021 to continue providing
Turkish Airlines Technetics, a globally trusted source for en- repairable component support for the car-
gineered components, seals, assemblies rier’s fleet of 26 E190 jet aircraft. The an-
The Pratt & Whitney Turkish Engine Center and sub-systems for demanding environ- nouncement was made during the Embraer
has signed one of its largest maintenance ments, has announced its newly-released Operators Conference, held in Fort Lauderd-
contracts, when Turkish Airlines selected the Seal Selector tool. The proprietary online tool ale, Florida, from October 31 to November 2.
engine center for up to a five-year Engine- quickly and easily determines the right cus- The multiyear program that originally began
Wise™ service agreement covering 100% of tom-engineered sealing solution(s) based on in 2011 features both the Pool Program and
the airline’s V2500® and CFM56-7b engine the world’s most demanding environments. repair management services for the carrier’s
overhaul requirements. The Pratt & Whitney Technetics provides custom-engineered seal- E-Jets, which includes material services en-
Turkish Engine Center, a joint venture between ing solutions that have proven themselves gineering, advanced component exchanges
Pratt & Whitney and Turkish Technic, started time and again in the world’s most extreme from Embraer’s spare parts warehouse in Fort
operations in 2010 and draws on decades environments. From abradable materials that Lauderdale, Florida, and a dedicated logistics
of maintenance experience from both Pratt increase airflow in turbines to inflatable seals channel to deliver parts to the Aerolíneas Ar-
& Whitney and Turkish Airlines. The engine that protect process materials and operators gentinas cargo facility in Miami, Florida.
center is equipped with high-tech, innovative in the life sciences, every sealing solution
AviTrader MRO - November 2017
MRO and Production News 10
year, as well as a 30% increase in the number
of employees in Sofia to 1,300.
Vector Aerospace signs exclusive
agreement with Precision Air Services
Vector Aerospace has signed a new seven-year
exclusive engine service agreement with Preci-
sion Air Services, to support the Tanzanian air-
line’s fleet of ATR regional turboprop aircraft.
Precision Air is the second-largest operator of
ATR aircraft in Africa, flying a fleet of five ATR
72-500, three ATR 42-500 and one ATR 42-
600 regional turboprops to destinations includ-
ing Nairobi, Kilimanjaro, Arusha, Zanzibar and
Dodoma. Under the terms of the exclusive mul-
GA Telesis and Czech Technics launch joint service for ATR turboprop aircraft ti-year agreement, Vector will provide Precision
Photo: Czech Airlines Technic
Air with comprehensive engine maintenance,
repair and overhaul services from its Gonesse,
Czech Airlines Technics and GA Telesis Czech Airlines Technics to launch fifth France, facility on the outskirts of Paris, along
to launch joint service for ATR turbo- base maintenance line with engineering, training and engine condi-
prop aircraft tion trend monitoring (ECTM) services.
Czech Airlines Technics (CSAT), a daughter
Czech Airlines Technics (CSAT), a daughter company of the Czech Aeroholding Group,
company of the Czech Aeroholding Group providing aircraft maintenance and repair ser-
providing aircraft maintenance services, has vices, has launched a fifth base maintenance Alaska Airlines signs US$500m sup-
signed a Memorandum of Understanding line for Boeing 737, A320 Family and ATR air- port agreement
with GA Telesis (GAT), a US-based key player craft this autumn. Thanks to additional capac-
within the aviation and aerospace industries, ity increases in the aircraft base maintenance Alaska Airlines and CFM International have
at the MRO Europe in London. Based on the area, the workload capacity will grow by 25%. signed a nine-year Rate Per Flight Hour (RPFH)
agreement, the two companies are to form The planned launch of operations of the fifth maintenance agreement to support 128
an integrated supply chain partnership and base maintenance line is connected with the CFM56-7B engines that power the airline’s s
offer customers a complex service for ATR hiring process of about 80 employees. Suffi- fleet of Boeing Next-Generation 737-800 air-
turboprop aircraft. The service will also cover cient investment in a hangar stand and mate- craft. The agreement, which includes spare en-
the support of rotating aircraft parts including rial supplies for the existing technical facilities gines, is valued at nearly $500 million U.S. at
repairs, spare parts inventory and logistics. of Hangar F, located on Václav Havel Airport list price. Rate per Flight Hour agreements are
The new joint product will be provided based Prague premises, was required to enable the part of CFM’s portfolio of flexible aftermarket
on a “Power by Hour” program, charging launch of operations of the fifth base mainte- support offerings. After an extensive market Re-
air carriers a fee according to flight hours. nance line. quest for Proposal (RFP), CFM was selected to
Under the program, CSAT workers will be in be Alaska’s CFM56-7B maintenance provider.
charge of performing repairs of rotating air- The companies negotiated a unique contract
craft parts, such as propeller blades, for GAT Lufthansa Technik Sofia further throughout the term of which CFM will provide
clients using either its own capacity or via ex- expands capacities in Bulgaria complete engine maintenance and support,
ternal partners. The partner company will be including providing lease engines, transporta-
in charge of the spare parts inventory, logis- Lufthansa Technik is expanding its capacity with tion, and material services.
tics and storage. The companies will join ef- a new hangar, office and multifunctional build-
forts in terms of business support and search ing at Sofia Airport, becoming the largest base
for new customers. The creation of a special maintenance facility in Eastern Europe. Bulgar- Pratt & Whitney signs exhaust system
store, a pool, of components for rotating ian subsidiary Lufthansa Technik Sofia will be component distribution agreement
aircraft parts into which CSAT is to deposit also the largest base maintenance site of Luf- with Satair Group
the spare parts it currently owns and cannot thansa Technik in Europe. The total investment
sufficiently use is also a part of the agree- in the project amounts to approximately €35m Pratt & Whitney has entered into an agreement
ment between the parties. GAT will subse- (US$41m) invested together with the joint ven- with Satair Group for the exclusive distribution
quently supply the pool with additional spare ture partner Bulgarian Airways Group. The of PW4000 100-inch engine nacelle exhaust
parts and components to ensure it covers all funds were used for the construction of the new system parts. Under the terms of the agree-
requests by future customers. GAT has cre- six-level multifunctional building, combining ment, Satair Group will distribute the spare
ated a special tool called iGEAR (Intelligent hangar, offices and workshop areas. The new parts to Pratt & Whitney’s worldwide customer
Global Engine & Airframe Replenishment) to expansion will lead to an increase in produc- base. Satair Group will also maintain cus-
facilitate access to the pool. The partnership tion lines and further growth of the central ser- tomer orders and fulfillment for the life of the
has been entered into for a five-year period vice departments which, from Sofia, serve the program and has already taken over distri-
with the option of extension thereafter. Final worldwide Lufthansa Technik network of base bution duties. “Our mission is to provide our
terms and conditions of co-operation will be maintenance facilities. That means 60% capac- customers with the highest level of aftermarket
specified by the end of the year. ity increase or 1 million man-hours in total per support throughout the engine’s lifecycle un-
AviTrader MRO - November 2017ACQUISITION. MANAGEMENT. LEASING. MONETIZATION.
MRO and Production News 11
WE HAVE ALL THE BASES COVERED.
For more information about TrueAero’s asset management,
leasing, and aftermarket materials solutions, contact us or
visit our website today.
AviTrader MRO - November 2017MRO and Production News 12
der the Pratt & Whitney EngineWise™ service entering regular revenue service, the freight- and overhauled at Lufthansa Technik’s global
brand,” said Earl Exum, Pratt & Whitney’s Vice ers will be utilized by Another Joy Foundation network of repair facilities. Pooling will be pro-
President, Transactional Aftermarket. “We are to transport tons of humanitarian aid from the vided through Hong Kong and Singapore,
pleased that our PW4000 engine custom- USA to Puerto Rico, to help those in need who where Lufthansa Technik operates two ware-
ers will have expanded use of Satair Group’s have been affected by hurricane Maria. houses for the Asia Pacific region. SriLankan
worldwide distribution network.” Airlines first placed its trust in Lufthansa Tech-
nik’s component support in 2012. Currently,
the carrier’s A320 fleet consists of nine A320
STG Aerospace receives lighting and six A320neo aircraft.
LHT signs component support contract retrofit contract
with Pan Pacific Airlines
India’s third-largest airline, SpiceJet, has part-
Lufthansa Technik AG has been commissioned nered with STG Aerospace in a cabin lighting
HAECO Americas and IAC announce
with comprehensive component supply for the retrofit program, which will see the airline up-
co-location in Lake City, FL
fleet of A320s operated by the Philippine car- grade its fleet of 737-700/-800/-900s with
rier Pan Pacific Airlines. The Total Component LED aftermarket ambient lighting solution, HAECO Americas, a subsidiary of the HAE-
Support (TCS®) contract with a term of six liTeMood®. This is the first major retrofit win CO Group with headquarters in Greensboro,
years took effect on November 1, 2017. The for STG Aerospace in the Asia Pacific region North Carolina, USA and IAC (International
integrated component support comprises the and the largest lighting retrofit contract that the Aerospace Coatings) have signed a three-year
repair and overhaul of components as well as company has been awarded. A customer of agreement for IAC to sub-lease Hangar 9 of
pooling and spare part leasing at the airline’s saf-Tglo® since 2005, SpiceJet will now com- HAECO Americas’ Lake City, Florida, facility.
home base. To safeguard Pan Pacific Airlines’ bine both liTeMood® and saf-Tglo® systems to Jim Sokol, President of MRO Services, HAECO
daily operations, Lufthansa Technik guarantees provide two cabin lighting systems that comple- Americas, said: “IAC provides a complemen-
100% reliable deliveries from its TCS® pool of ment each other, resulting in satisfied passen- tary service, which now allows us to offer full
more than 100,000 different components. This gers, increased wellbeing and reduced stress painting capability within our Lake City, Florida
exclusive agreement was signed on November during the flight. facility. IAC is recognized as a world-class lead-
1, during MRO Asia-Pacific. er in aircraft finishing. The co-operation helps
expand our customers’ options when undergo-
Hebei Airlines relies on emergen- ing maintenance or livery needs.” The agree-
ment includes the option for further contractual
Sibir Technic completes A-check on cy floor-path marking system from
extensions. Both HAECO Americas and IAC
Embraer E170 Lufthansa Technik
are working together closely to support each
Hebei Airlines will begin to use the emergency other’s business and customer base.
Sibir Technic, a subsidiary of ENGINEERING
Holding is the first MRO company in Russia to floor-path marking system GuideU “Custom-
start providing light base maintenance, includ- Fit” from Lufthansa Technik in its Boeing 737
ing the A-check on Embraer E170 regional jets. and Embraer E190 fleets. For the first time, this Monarch Aircraft Engineering wins
Russia’s only operator of the Embraer E170, S7 system will be implemented with an integrated
China Airlines line maintenance
Airlines launched operation of this type in the corporate logo, enabling an even more cus-
contract
spring of 2017. Sibir Technic’s maintenance staff tomized adaptation to the corporate design of
received appropriate training and ratings in Eu- an airline. A total of 22 aircraft operated by Monarch Aircraft Engineering (MAEL) has
rope, and have already completed A-checks on the well-known Chinese airline, which is head- signed a line maintenance agreement with
several Brazilian-built aircraft at the company’s quartered in Shijiazhuang, are scheduled to China Airlines. The flag carrier is a new cus-
certified facility at Novosibirsk’s Tolmachevo be fitted with the solution. The first is already tomer for MAEL who will carry out line mainte-
airport. Sibir Technic provides maintenance on in service. Through the use of its logo on the nance work when China Airlines begins its Lon-
the Embraer E170 completely in-house, without floor path marking, Hebei Airlines is pursuing don Gatwick service in December 2017. With
involving any third party assistance. a highly individual design that underscores the four flights a week in the winter, followed by
high quality of the cabin product it offers. five flights or more next summer, the line main-
tenance work will be carried out on the airlines
Airbus A350 aircraft.
AEI to provide two CRJ200 conver-
sions for Pinnacle Partners Lufthansa Technik extends compo-
nent support for SriLankan Airlines’
Aeronautical Engineers (AEI) has signed a con- A320 fleet AJW Group expands contract with Air
tract to provide two CRJ200 SF freighter con- Transat to cover A330 fleet growth
versions to Pinnacle Partners. The first CRJ200 SriLankan Airlines and Lufthansa Technik have
(MSN 7421) will commence modification in extended their existing component support con- AJW Group has expanded its power-by-the-
November with redelivery scheduled for March tract for the growing Airbus A320 fleet of Sri hour (PBH) contract with Canadian carrier Air
2018. The second CRJ200 (MSN 7417) will Lanka’s national carrier. The expanded Total Transat. AJW Group originally signed a long-
commence modification in December, with re- Component Support (TCS®) agreement com- term PBH contract with Air Transat in 2013 to
delivery scheduled for April 2018. Both freight- prises all aircraft of SriLankan Airlines’ growing provide support for the airline’s Airbus A330
er conversions will take place at Commercial A320 fleet, including its new A320neo aircraft. aircraft, and the expanded contract will now
Jet’s Dothan, Alabama facility, which is one of Lufthansa Technik will take care of all aspects support their increased Airbus A330 fleet,
five authorized AEI Conversion Centers world- relating to daily component supply for SriLan- which has grown by 33% since the start of the
wide. Prior to the first two CRJ200 SF aircraft kan Airlines. The components will be repaired contract.
AviTrader MRO - November 2017MRO and Production News 13
Georgian Airways now supported by from ASL Aviation subsidiary ACLAS Global studies of advanced aerostructure technolo-
Spairliners as part of a PBH agreement with ASL. AAR gies for future-generation commercial aircraft.
has a dedicated ATR product line team based MHI manufactures 787 composite wings at its
Georgian Airways, the Tbilisi-based airline, in the UK to serve ATR customer parts require- factory in Nagoya. The agreement aims to en-
and Spairliners, one of the market leaders in ments globally. able sales by pursuing increased efficiency in
Aircraft Component Care based in Hamburg, MHI’s production system and its supply chain
Germany, have signed a multi-year contract through lean production methods, automation
for all-embracing component maintenance and other activities. MHI’s work statement for
services of two Embraer E190 aircraft. The CFM signs third-party LEAP aftermarket Boeing Commercial Airplanes also includes
contract comprises pool access and compo- support agreements fuselage sections for the 767, 777 and 777X
nent repair services for Georgian Airways. programs. In total, about 150 Japanese com-
CFM International has signed agreements
Spairliners supports Georgian Airways with panies are suppliers to Boeing across its com-
with Lufthansa Technik and AFI KLM E&M
spare parts from its large-scaled component mercial and defense product lines. Boeing pro-
to provide maintenance and overhaul sup-
pool in Munich and Paris. Hereby, smooth cures approximately US$5bn worth of goods
port for its advanced LEAP engine product
flight operations will be ensured in an efficient and services from Japan every year, while Boe-
line. CFM has long-standing relationships
and timely manner. The agreed component ing-related work supports tens of thousands
with both companies on the CFM56 family,
repair services are carried out by Spairlin- of highly skilled aerospace jobs in the United
and has granted licenses for them to develop
ers’ parent companies Lufthansa Technik AG States and Japan.
MRO services offerings to provide both on-
and Air France Industries KLM Engineering &
wing and on-site support, as well as engine
Maintenance.
overhaul for LEAP. CFM has three of its own
shops with LEAP capability to support the en- HAECO Xiamen and Comac sign
gine’s entry into commercial service: Lafay- trainings co-operation framework
ATR offers new Vibration Monitoring ette, Indiana in the U.S., which can support agreement
System both the LEAP-1A and LEAP-1B; Brussels, Bel-
gium, which has capability for the LEAP-1A; HAECO Xiamen and Commercial Aircraft
Turboprop manufacturer ATR, has certified its and Saint-Quentin-en-Yvelines, France, which Corporation of China (COMAC) have signed
new Vibration Monitoring System (VMS) which will support the LEAP-1B. The company has a training co-operation framework agree-
will allow airlines to constantly monitor and also established worldwide On-Site Support ment. Under the agreement, HAECO Xia-
fine-tune propeller vibration. This innovation, (OSS) capabilities to provide customers with men Technical Training Centre, a CCAR-147,
which will be available on all new aircraft extended on-wing support. These facilities HKAR-147 and EASA Part-147 approved
from March 2018, improves both aircraft reli- can also perform lighter MRO workscopes. aircraft maintenance training organization,
ability and passenger comfort. It will also be The new third-party shops will provide addi- will become a key training base for the con-
available to retrofit on in service aircraft, via tional LEAP-1A and -1B capacity as they come tinuous development of COMAC’s personnel.
Service Bulletin. The new VMS will be perma- online over the next couple of years. HAECO Xiamen will utilize its extensive ex-
nently installed on the aircraft and replaces perience and resources in training within the
the previous temporary ground tooling sys- aviation industry to deliver a series of avia-
tems used to monitor engine vibration. This tion-focused theoretical and practical training
equipment, which will be supplied by Meggitt Singapore Airlines signs US$1.7bn courses to COMAC. Starting from the basic
Sensing Systems, removes the need for air- GE9X services agreement skills in maintaining aircraft components,
lines to organize regular ground testing or put HAECO Xiamen and COMAC are committed
Singapore Airlines has signed a 12-year
maintenance personnel on revenue flights, to working together in progressively nurturing
TrueChoice™ flight hour agreement with GE
therefore improving maintenance efficiency. well-rounded aircraft engineering profession-
Aviation for the maintenance, repair and
als who will serve the Chinese aviation indus-
overhaul of its 45 GE9X engines that will
try’s growing needs for aircraft design, manu-
power its Boeing 777-9 aircraft. The services
AAR expands ATR product line by facturing and customer service personnel.
agreement is valued at more than US$1.7bn.
acquiring Island Air inventory, plus This announcement follows Singapore Air-
tooling lines’ February 2017 notice of intent to order
20 GE9X-powered Boeing 777-9 aircraft and ST Aerospace secures new contracts
AAR, a leading integrator of aviation supply five spare engines. The engine order is valued worth about S$530m in third-quarter
chain solutions, has expanded its ATR parts at more than US$2bn list price. 2017
offerings by purchasing the entire ATR inven-
tory, plus tooling, of Honolulu-based Island Singapore Technologies Aerospace (ST Aero-
Air, which recently phased out its ATR opera- space) secured new contracts worth about
tions. The acquisition deepens AAR’s commit- Boeing, Mitsubishi Heavy Industries S$530m in the third quarter (3Q) of 2017
ment to providing global, customer-facing reach agreement on cost reduction for services ranging from heavy airframe and
solutions to the ATR market. The inventory for 787 production engine maintenance, component repair and
will be integrated into AAR’s existing ATR sup- overhaul to cabin retrofit. The heavy airframe
ply chain and strategically positioned at the Boeing and Mitsubishi Heavy Industries (MHI) maintenance contracts include long-term
Company’s distribution hubs in the United have reached an agreement to strengthen agreements to support a range of aircraft
States, Singapore and Hannover, Germany. collaboration in ways that will enhance both platforms from MD-11, Boeing 777 and Boe-
This is the first ATR inventory package AAR companies’ competitiveness. The agreement ing 757 to A300 for freight operators. Other
has purchased since entering the ATR market includes efforts to reduce costs in MHI produc- MRO contracts clinched in 3Q2017 include
earlier this year when it bought ATR inventory tion of wings for the 787 Dreamliner and joint agreements to service CFM56-7B engines for
AviTrader MRO - November 2017MRO and Production News 14
European and Asia airlines, as well as agree- for an independent repair certification with main-deck compartments for passengers
ments to overhaul the landing gears of com- the Federal Aviation Administration, allowing and cargo. PEMCO expects to receive U.S.
mercial and military aircraft. the company to streamline its completion pro- Federal Aviation Administration supplemen-
ST Aerospace further grew its cabin retro- cess, and expedite its maintenance, refurbish- tal type certification (STC) approval for its
fit business and secured a launch customer ment and completion contracts in the most B737-700 conversion programs by the third
for its aircraft seats when it won a contract efficient way possible. quarter of 2018. After the initial FAA issu-
from an aircraft leasing company to refresh ance, PEMCO plans to certify the programs
and reconfigure the cabin interior of two with the European Aviation Safety Agency
A320 aircraft. ST Aerospace will be installing PEMCO hosts inaugural door door- and the Civil Aviation Administration of Chi-
its in-house designed seat, which is tailored cutting ceremony for B737-700 Flex- na shortly thereafter. PEMCO intends to offer
specifically for narrow-body aircraft and me- Combi™ conversion aircraft three configurations of the PEMCO B737-700
dium-haul flights, when refreshing the cabin FlexCombi™: a 24-passenger cabin plus a
interior of the two aircraft. The aerospace PEMCO World Air Services (PEMCO) has held 2,640-cubic-foot cargo hold for up to 30,000
sector redelivered a total of 1,134 aircraft for a ceremony to mark the cutting of a cargo- pounds of payload in six pallet positions; a
airframe maintenance and modification work door opening in a passenger airframe for 12-passenger cabin plus a 3,005-cubic-foot
in 3Q2017. Additionally, a total of 11,509 the conversion of its first Boeing Next Gen- cargo hold for up to 35,000 pounds of pay-
components, 65 landing gears and 34 en- eration 737-700 Passenger-to-FlexCombi™ load in seven pallet positions; or full-freighter
gines were processed, while 2,565 engine aircraft. The event is a major milestone for mode consisting of a 3,370-cubic-foot cargo
washes were conducted. Bahrain-based Chisholm Enterprises, an in- hold for up to 40,000 pounds of payload in
The sector continued to expand its capabili- ternationally recognized provider of tailored eight pallet positions. The available positions
ties when its airframe MRO station in Guang- aviation and business solutions in the Middle will accommodate 88” x 125” or 88” x 108”
zhou, China, received approval of the Civil East, which is the customer for this aircraft. pallets, with the seventh and eighth positions
Aviation Authority of Malaysia to provide Its subsidiary Texel Air, a non-scheduled car- accommodating smaller pallets.
maintenance service for Boeing 767, while its go airline, will operate the B737-700 Flex-
VIP completion and refurbishment business, Combi™ from Bahrain International Airport.
AERIA Luxury Interiors, registered successfully The FlexCombi™ design provides separate
Finance News
GE Additive acquires GeonX to strengthen software managed to achieve such results with half the sales force of 2016. Hav-
simulation capabilities ing analyzed its quarterly results, the Locatory.com management team
concluded that the last trimester has been the quarter with the best sales
GE Additive has acquired GeonX, a privately-owned developer of simula- in the entire company’s history. The unprecedented growth was largely
tion software. Terms of the deal are not being disclosed. Headquartered driven by the introduction of a renewed pricing strategy, more flexible
in Belgium, GeonX provides software for engineers when developing payment solutions, and highly optimized in-house processes. This al-
new products, to simulate additive manufacturing, welding, machining lowed the company to significantly raise its operational efficiency and
and heat treatment processes in various industries such as aerospace, reduce the need for extensive human resources. In addition to the afore-
automotive and energy. GeonX’s simulation software tool, Virfac® (short mentioned business optimization processes, during the year Locatory.
for Virtual Factory), assesses products prior to production; predicting de- com presented the market with a wide range of new online tools and
fects, distortions and stresses and the impact manufacturing has on a products, thus securing the company several large-scale projects and a
product’s durability. This helps to reduce the number of prototypes built 15 percent increase in customer base.
during the development phase, while improving the quality and lifetime
of the manufactured products. This can minimize the time to market and
development costs. For many years, GE has been a leading end user
Astronics Corporation reports 2017 third-quarter fi-
and innovator in the additive manufacturing space. In addition to the
nancial results
US$1.4bn investment in Concept Laser and Arcam, GE has also invested
approximately US$1.5bn in manufacturing and additive technologies Astronics Corporation has released its financial results for the three and
over the past 10 years, developed additive applications across all GE nine months ended September 30, 2017. Consolidated third-quarter
businesses, created new services applications across the company, and sales were down US$5.5m from the same period last year. Aerospace
earned hundreds of patents in material science. In 2016, the company segment sales of US$128.7m were up $3.5 million and Test Systems
established GE Additive to become a leading supplier of additive tech- segment sales of US$21.0m were down US$9.0m. Consolidated gross
nology, materials and services for industries and businesses worldwide. margin was 21.7% in the third quarter of 2017 compared with 24.9% in
the third quarter of 2016. Consolidated gross margin was negatively af-
fected by lower organic sales volumes coupled with the Custom Control
Locatory.com reports record growth for 2017 Concepts (“CCC”) acquisition, having a significantly lower margin pro-
file at this point in its business cycle, compared with the organic business.
This October, the online aircraft spare parts and repair capabilities Net income was US$6.1m compared with US$12.1m in the prior year.
marketplace Locatory.com has announced hitting record highs and Consolidated sales for the first nine months of 2017 decreased by
increasing the company’s sales by 20%. Moreover, the company has US$25.9m, or 5.4%, to US$453.1m. Aerospace segment sales were
AviTrader MRO - November 2017Finance News 16
down US$11.0m, or 2.7%, year-over-year to US$395.0m, while Test Q400s, at a list price valued of US$1.7 billion. Further engine delivery
Systems segment sales were down US$15.0m, or 20.5%, to US$58.1m. delays from Pratt & Whitney have impacted full-year C Series aircraft
Net income for the first half of 2017 totaled US$25.3m compared to deliveries, the result being that 8-10 C Series aircraft should be deliv-
US$38.5m in the prior year. ered in the final quarter. Overall, revenue for the Commercial Aircraft
sector is now estimated at US$2.5 billion for the full year. The C Series
program is gaining greater market acceptance, with one European cus-
tomer signing a Letter of Intent (LOI) for up to 61 of the new jets – 31 on
Boeing completes acquisition of Aurora Flight Sciences firm order and options for an additional 30, valued at US$2.4 billion
at list price. The LOI is subject to the execution of definitive agreements
Boeing has completed the acquisition of Aurora Flight Sciences, a world-
between both parties, which is expected before year end.
class innovator, developer and manufacturer of advanced aerospace
platforms and autonomous systems. Aurora will operate under Boe-
ing Engineering, Test & Technology as a subsidiary called Aurora Flight
Sciences, A Boeing Company. It will retain an independent operating Airbus reports results for nine-month period 2017
model while benefiting from Boeing’s resources and position as one of
the leading provider of aerospace products and services. Boeing first In summary, the results for Airbus’ nine-month results for 2017 reveal
announced the agreement with Aurora on Oct. 5, 2017 pending U.S. revenue of €43bn, EBIT adjusted at €1.8bn, EBIT reported €2.3bn and
government approval. Terms of the approved deal were not disclosed EPS reported at €2.39bn. According to the company, the commercial
and do not affect Boeing’s financial guidance. Headquartered in Ma- aircraft market is healthy with a robust backlog which is supporting
nassas, Va., Aurora has more than 550 employees and operates in six ramp-up plans. However, engine delays have had an impact on the
locations, including research and development centers in Cambridge, 9m results.
Mass. and Luzern, Switzerland; manufacturing facilities in Bridgeport, Order intake totaled €50.8bn compared to 9m 2016 of €73.2bn with
W.Va. and Columbus, Miss., with offices in Dayton, Ohio, and Mountain the order book valued at €945bn as of September 30, 2017 (year-end
View, Calif. 2016: €1,060bn). A total of 271 net commercial aircraft orders were
received (9m 2016: 380 aircraft), with the order backlog comprising
6,691 aircraft at the end of September. Net helicopter orders totaled
210 units (9m 2016: 211 units), including 14 H175s in the third quarter.
Airbus completes sale of Vector Aerospace to StandardAero At Defence and Space, the good order momentum continued in Military
Aircraft with five A330 MRTTs booked in total for Germany and Norway
StandardAero Aviation and Airbus have finalized the former’s acqui-
in the third quarter. The overall order intake at the division was impacted
sition of Vector Aerospace from Airbus. Vector is a global aerospace
by perimeter changes from portfolio reshaping and the slow telecom-
maintenance, repair and overhaul company, providing responsive,
munications’ satellite market.
quality support for turbine engines, components, fixed- and rotary-wing
Revenues were stable at €43.0bn (9m 2016: €42.7bn) despite the pe-
aircraft. A truly international company, it generated revenues of over
rimeter changes at Defence and Space and were higher on a compara-
US$700m in 2016 and employs approximately 2,200 people in 22 lo-
ble basis. Commercial Aircraft revenues rose four percent with deliveries
cations across Canada, the United States, the United Kingdom, France,
of 454 aircraft (9m 2016: 462 aircraft) comprising 350 A320 Family,
Kenya, South Africa, Australia and Singapore. The newly combined
50 A350 XWBs, 45 A330s and nine A380s. Helicopters’ revenues were
company, which will maintain the name of StandardAero, has more
slightly higher with deliveries of 266 units (9m 2016: 258 units). Rev-
than 6,000 employees in 42 locations across five continents, with an-
enues at Defence and Space reflected the negative impact of around
nual revenues of approximately US$3bn.
€1.4bn from the perimeter changes.
Bombardier’s third-quarter 2017 results – positive outlook
AeroCentury signs agreement to acquire JetFleet Holding
for C Series
AeroCentury (the Company or AeroCentury), an independent aircraft
Bombardier, the Canadian plane and train manufacturer has released
leasing company, has signed a definitive Agreement and Plan of Merg-
third-quarter 2017 financial results, revealing revenues of US$3.8 bil-
er (Merger Agreement) for the acquisition of JetFleet Holding (JHC) on
lion, EBIT before special items of US$165 million and an 8.8 percent
October 26, 2017. JHC is the parent of JetFleet Management Corp.
EBIT margin for its Business Aircraft sector. Commercial Aircraft EBIT
(JMC), which has managed the Company’s operations and aircraft
before special terms was as anticipated, in relation the C Series ramp-
portfolio since AeroCentury’s founding in 1997. The current manage-
up plan, at US$495 million.
ment agreement between JMC and the Company was entered into in
The company is on track to deliver 135 Business Aircraft by year end,
2015 and has a term ending in 2025. Under the Merger Agreement,
having delivered 31 during the quarter. The Global 7000 aircraft is on
JHC shareholders are to receive US$3.5m in cash and 129,286 shares
schedule for entry-into-service for the second half of 2018. Results show
of the Company’s Common Stock, subject to various adjustments at
the Business Aircraft sector is on target for an 8 percent EBIT margin be-
closing, in return for all the outstanding capital stock of JHC. The clos-
fore special items for the full year. October 16 saw the announcement of
ing of the acquisition is expected to occur in the first quarter of 2018,
the partnership with Airbus for the C Series which is anticipated will dou-
and is subject to satisfaction of certain conditions customary for merger
ble the value of the program. 16 aircraft from the Commercial Aircraft
transactions. Until the closing, AeroCentury and JHC will operate as
division were delivered during the quarter (4 CRJ Series, 7 Q400s and 5
separate businesses. Once the acquisition is consummated, JHC will be-
C Series.) Total deliveries including turboprops reached 39 aircraft, with
come a wholly-owned subsidiary of AeroCentury, thereby consolidating
results on track for the delivery of 50 aircraft for the full year. The com-
the Company’s current management team at JHC with the Company’s
pany received its largest-ever order for turboprop planes, with SpiceJet
aircraft portfolio into one enterprise.
placing a firm order for 25 Q400s and purchase rights for another 25
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